1973 (4) TMI 32

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....is court under section 66(2) of the Indian Income-tax Act, 1922 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Allahabad, has referred the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the assessee was entitled to the deduction of interest and litigation expenses from the share of the profit derived b....

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....sessee did not carry on any money-lending business nor had the loans been raised in connection with the assessee's business. Before the Income-tax Appellate Tribunal the assessee based his claim under section 10(2)(xv) of the Act as expenditure incurred wholly and exclusively for the purpose of the business. The Tribunal has accepted this claim and has held that the assessee was entitled to cla....

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....eement and the Allahabad Bank filed a suit on November 15, 1952, for the recovery of the balance with interest. The suit was decreed with costs on April 12, 1955, by the civil judge, Allahabad. The decree included a sum of Rs. 15,270 on account of interest and costs. This figure together with the interest payable to the Bombay Life Insurance Company came to Rs. 16,755. Deducting a sum of Rs. 188 o....

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....cinemas. It is thus clear that the loans had been raised by the assessee for the purposes of his business and interest payable on such loans would clearly be an allowable expenditure under section 10(2)(xv) of the Act. The learned counsel for the department does not dispute this position. He, however, argues that the position changed when the cinema business was taken over by a partnership firm....